On November 11, last year, a two-seater drone taxi’EH216′ of a two-seater drone taxi from China is flying unmanned at a demonstration flight event for urban air transportation (UAM) held by the Seoul Metropolitan Government and the Ministry of Land, Infrastructure and Transport around the Mulbit Stage at Hangang Park in Yeouido, Seoul./Photo = yunhap news
China’s leading drone company Ehang, famous for its autonomous drone taxis, turned downward on the New York Stock Market on the 18th (local time). Lee Hang is the target of short selling forces, and it looks like the stock price is riding a roller coaster every day.
Lee Hang finished the market at $61.19 per share in the NASDAQ market, down 21.28% ($16.54) from the previous day’s closing price ($77.73). On this day, the stock price was cut in half from the closing price ($124.09) on the 12th, before a sharp decline.
The previous day alone, Lee Hang ended the market at 77.73 dollars, up 31.43 dollars (67.88%) per share compared to the previous day.
When Wolf Par Research published a report stating that Lee Hang’s production, manufacturing, sales, and business cooperation were false, the stock price plunged by about 63%, and Lee Hang hurried to refute it, and the stock price soared.
According to the South China Morning Post (SCMP), in a statement, Hang Lee pointed out that Wolfpack’s report was “deceptive” and “full of misrepresentation and unconfirmed statements with numerous errors.”
Lee Hang said, “We are considering taking appropriate and necessary actions to protect the interests of shareholders.” However, Lee Hang did not specifically refute what information or statements by Wolffax Research were wrong.
Earlier, Wolfpack Research argued that Lee Hang’s major contract was fake through a report under the heading “Lee Hang’s share price surge will fall.”
According to the report, a company called Kunxiang in Shanghai, China, which signed a contract with Lee Hang, is a company that was impatient to sign a contract. Wolfpack Research said that Kunxiang’s address in Shanghai was fake.
In addition, he went to the Li-Hang headquarters in Guangzhou, China, but it was explained that it was not good enough. It was also said that the basic lines and facilities for producing drone taxis were lacking. In addition, there is a lack of security, such as having only one security guard in a place full of technology used in the manufacturing process and design, and the design and test centers are not tested.
Meanwhile, Lee Hang stock is also popular with’Seohak ants’ investing in overseas stocks, and domestic investors are also concerned about damage. According to the Korea Securities Depository, the balance of Korean investors’ shares of Lee Hang Holdings reached about 69.9 billion won ($550 million) as of the 16th. This is a scale that ranks in the top 10 among overseas stocks held by domestic investors.
Lee Hang is a drone company founded by Huhwas in April 2014. The company name means it carries 100 million passengers. In 2016, CES, the world’s largest consumer electronics fair, unveiled the world’s first manned drone,’Lee Hang 184′, and began to attract worldwide attention.
From 2018, the commercialization of urban aviation mobility (UAM) using autonomous aircraft (AAV) technology was promoted in earnest. In the third quarter of 2019, before listing on Nasdaq at the end of the year, it increased to about 8.36 billion won (48.8 million yuan).
Seongsu Bae, reporter Hankyung.com [email protected]